New report finds significant energy sector methane reductions achievable across Africa and Latin America, but enabling conditions are key
A new report commissioned by Clean Air Task Force (CATF) and produced by Carbon Limits finds that substantial methane emissions reductions are achievable across nine major oil and gas producing countries in Africa and Latin America using existing technologies, and in many cases at relatively low cost. But the analysis also finds that abatement costs vary considerably across countries, shaped by infrastructure availability, regulatory frameworks, gas utilization opportunities, and access to financing.
The report, Methane Abatement in the Oil and Gas Sector: Costs and Opportunities for Key African and Latin American Countries, assesses four mitigation options (leak detection and repair (LDAR), vapor recovery units (VRUs), improved flaring practices, and replacement of gas-driven pneumatic equipment) across Algeria, Angola, Argentina, Brazil, Egypt, Ghana, Libya, Mexico, and Nigeria. Using a bottom-up marginal abatement cost curve (MACC) approach, the analysis provides country-specific estimates of both methane emissions reduction potential and updated cost estimates which reflect elements of the economic, policy, and infrastructure context in which companies operate, rather than aggregate global averages.
Critically, the report finds that deploying the full portfolio of assessed mitigation measures could deliver significant reductions across all nine countries. For example, leak detection and repair programs can reduce fugitive emissions by over 1,100 kt each year at an average cost of $36/ton of methane reduced. In several countries, quarterly LDAR can be implemented with net cost savings, when accounting for the value of saved gas. While costs are higher in countries with lower rates of gas utilization, they remain below the low-cost threshold of $20/t CO2e.
“The technology to cut methane from oil and gas operations exists and is well understood,” said Lesley Feldman, Director of Research and Analysis for Methane Pollution Prevention at CATF. “What this report makes clear is that technology availability alone doesn’t determine whether reductions happen. Infrastructure gaps, import barriers on equipment, and constrained access to capital can make the same mitigation measure far more expensive in one country than another. Policymakers and regulators need to understand and address those drivers if they want to accelerate deployment.”
“Financing is a critical piece to planning methane mitigation in the oil and gas sector,” said James Turrito, Director for Oil and Gas Methane at CATF. “This report should facilitate initial discussions to better understand true project costs for mitigating methane across four cost-effective opportunities.”
To accelerate methane mitigation efforts, the report suggests that clear and predictable regulations can be among the most powerful levers available to policymakers aiming to cut methane from their energy sectors. That includes establishing consistent performance expectations across operators, reducing investment uncertainty, and creating the long-term visibility that supports local supply chain development and lowers the risk perceptions that constrain access to capital. At the same time, addressing the gaps in gas gathering and utilization infrastructure present in several countries could significantly increase the benefit from monetizing saved gas across mitigation options.
“Having detailed, country-level data is essential to help policymakers and decision-makers prioritize the most effective methane mitigation actions,” said Manon Simon, Director at Carbon Limits. “By combining a consistent methodological approach with country-specific insights, enriched by contributions from many local stakeholders, this analysis shows that significant emissions reductions can often be achieved at relatively low cost. The challenge now is to translate these findings into action. Strengthening regulatory frameworks, improving gas infrastructure, and mobilizing financing will be key to accelerating deployment and capturing these opportunities at scale.”
The report’s findings build on and add specificity to global estimates from the IEA’s Global Methane Tracker, which finds that around 70% of methane emissions from the fossil fuel sector could be reduced with existing technology.
Feldman continued:
“Where the IEA’s global estimates provide a high-level picture of what is technically and economically achievable, this report translates that picture into the country-specific cost structures, policy contexts, and infrastructure constraints that govern costs and deployment.”
Read the full report here to see detailed cost assessments and recommendations for each of the nine countries reviewed.
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About Clean Air Task Force
Clean Air Task Force (CATF) is a global nonprofit organization working to safeguard against the worst impacts of climate change by catalyzing the rapid development and deployment of low-carbon energy and other climate-protecting technologies. With 30 years of internationally recognized expertise on climate policy and a fierce commitment to exploring all potential solutions, CATF is a pragmatic, non-ideological advocacy group with the bold ideas needed to address climate change. CATF has offices in Boston, Washington D.C., and Brussels, with staff working virtually around the world. Visit catf.us and follow @cleanaircatf.
About Carbon Limits
Carbon Limits is an environmental consultancy dedicated to accelerating the transition to a low-carbon world. Headquartered in Oslo, Norway, we work with a global network of governments, businesses, financial institutions, and NGOs in over 80 countries to support them in identifying, developing, and financing projects that cut greenhouse gas emissions and create lasting economic value. Our team brings deep technical expertise and a pragmatic, results-oriented approach to advise on the design and implementation of climate policies and mitigation projects. Visit carbonlimits.no.
